Definition

A sale where the buyer makes payments over time rather than paying the full price upfront.

What to consider

  • Know your exact repayment schedule and total cost.
  • Make sure the monthly payment fits within your budget.
  • Consider refinancing if interest rates drop in the future.

Real world scenarios

  • Selling her car through an installment sale, Maria allowed the buyer to pay over several months, making the purchase more affordable while providing her with steady income.

Related terms

Investments & Retirement